every day trader on earth wants to find
the perfect
entry for their trade the issue is how
do you find that perfect entry well i
got good news for you because in this
video
i'm gonna show you five of the best most
common and highest success rate entry
points
on any trade on any indices on any forex
pair on any cryptocurrency
let's get into it
[Music]
welcome back to the channel everybody my
name's jeff bezos and this
is the moving average a show where we
talk about everything day trading to
keep you profitable on a consistent
basis
so when you're day trading the right way
and you want to use high leverage you
want a tight stop loss you don't want
the trade to go in draw down
and have to wait for your take profit to
get hit or the trade goes backwards on
you so these are strategies that i use
on a consistent basis regardless of
market condition
to find the best entries for my trades
with the
highest success rate and highest
probability of the trade going in my
direction
with the tightest stop loss so there are
a few things that i would like you to
get set up on your chart i'm not going
to go through these and all the settings
and everything you can find that in my
other videos but what i want you to do
is add three moving averages the 21
the 50 and the 200 these are all
smoothed moving averages
you can find them in the indicator
section there's actually one called
three smooth moving average by hamid
safi
the next indicator that i want you to
put up on your chart is the rsi
this one i do however want you to change
the settings i want you to get rid of
the 30 line and i want you to get rid of
the 70 line
and you're going to change both of these
to 50 so you can see where the middle
range is exactly
and only use it trading long above the
50 and short below the 50.
we will never be looking at overbought
and oversold we're just looking at the
momentum and the direction
of the price the next thing that i want
you to do if you're not
good at visually seeing this is put up
an indicator called
engulfing candles and basically it shows
you every single engulfing candle
that's up on the chart it's called the
engulfing candle indicator by
rmunoz bremunos if you're already good
at seeing engulfing candles with your
eyeballs you don't need that indicator
and instead i want you to put up the
stochastic rsi
one thing to keep in mind with the
stochastic rsi if you are trading a 15
minute time frame or higher you can
leave the standard settings 3 3 14 and
14.
if however you are trading lower than
the 15 minute time frame i want you to
change the stochastic length
to eight when looking at your chart and
doing your analysis i want you to do
your analysis
on the one hour time frame i want you to
get rid of all
indicators just hide them for the moment
so that you can actually
do some analysis on the price without
having any
clutter and chaos with indicators now
this is
us 30 on the one hour time frame what i
want you to do is mark up every single
peak
that you see in every single multiple
touch
resistance and support zone this is very
easy to do with your eyeballs all you
have to do
is just find where the price is
rejecting
and put up these levels you don't want
to look too far back because that price
action is no longer relevant
this is what's going on in the current
time frame now i promised you
five different entry strategies these
are a divergence
rejection with an engulfing candle
support and resistance levels
double tops and double bottoms and the
last one is going to be a break
and a retest a lot of these tie in
together hand
in hand and you can use them along with
each other
but i'm just going to go over these
separately really really quickly so
without even looking at the rsi
just looking at the price action you can
see right here on us 30
we had a low a lower low and then the
price rejected
up drawing a quick trend line right here
along this shows us a clear and concise
downtrend so why did the price go
up it's because the price lost momentum
at this support and resistance zone so
once the price rejected off of this
what we can do is go and look at the rsi
and right here for this level you can
see that there was a divergence in the
rsi
the price made a lower low and yet the
rsi
is making a higher low creating a
divergence so if you look at this side
by side
you can see price going down rsi going
up there should be a rejection
at this point that is going to be your
first and most
used entry point for any one of your
trades if you're trading support and
resistance zones
and you see a divergence like this with
a rejection go for it
go for a long position i know it's
dangerous trading counter trend because
we were in a downtrend
but that is a pretty clear and concise
entry point for you the next entry point
that i want to talk to you guys about is
engulfing candles
one of my favorite strategies to use is
a three line strike if you have not seen
that video it is right here but
essentially
you're looking for a momentum move down
and then a big fat rejection with an
engulfing candle
preferably eating the previous three
candles so imagine it like this
we had this long series of red candles
a long wick and then an engulfing candle
this engulfing candle almost
ate all three of these down moves and
this is a perfect three line strike
rejecting off of this big support zone
pushing to the upside so you could have
easily just held this for three candles
which is three hours
and made 180 points off of this one
because you'd be targeting this next
resistance zone now looking at the
latest
previous highs and the lows and support
and resistance levels
is where we get into trading support and
resistance zones
you can see that we rejected off of here
we had that divergence right here so we
rejected halfway at this previous low
and now we're trading above this support
line we also had this big
engulfing candle here so basically what
you can do is just
target in between these support and
resistance zones
if a trade is going in this direction
you know it's probably going to go to
here if you don't know for sure if it's
going to break through
but you could be almost positive that
it's going to go to this level
before it does something else so trading
off of support and resistance zones is
very very
important especially if you're holding a
trade for more than a few
hours again i want you to pair a few of
these strategies together
so when you're looking for a long
position right here assuming it's going
to go to the next
level of resistance check the rsi and
see if we're trading above the 50 level
you can see right here we actually are
above the 50 level
so this could potentially go up to the
next resistance zone
meaning that if you take a long position
right now on us 30
you could potentially make 240 points
just targeting the next zone
and obviously your stop loss is going to
be below the previous low right here so
with proper risk management keeping this
ratio at about one to two
make sure you don't over leverage but
this could be a really successful trade
for you
now the next thing that i want to talk
about is the break
and the re-test the break in the retest
is one of the greatest confirmations
that you can have
when trading off of support and
resistance zones you can see that the
price right here broke
above this zone came down really really
hard and rejected off of it
with this big fat bullish candle this
break
and then this hard retest is a clear
indication that you can easily go in on
a long position
again targeting the next support and
resistance zone all of these moves when
you're going long
make sure you check the rsi and know
that it's above the 50 level when going
in on a long position
if it is below the 50 level and you're
looking for short positions you are also
good to go
now all of this is essentially naked
trading you are not using any
indicators except for the rsi and
drawing up the support and resistance
zones
but if you want a better idea of why the
price is rejecting off of certain zones
that's why i keep the moving averages up
because you can see as the moving
averages are all swooping up we are in a
clear uptrend
rejecting off the 21 period moving
average and if you get a double
confluence like this rejecting off of a
solid support and resistance zone
as well as rejecting off the 21 moving
average on an
uptrend man that is money in the bank
every single time
and again as price breaks through
support and resistance levels
and you can see it also breaking through
previous moving averages
you can easily target the next
subsequent moving average
which is also a key level of support and
resistance
this is the fundamentals of trading
price action
you're not looking at what the banks are
doing you're not looking at what the
news is doing
you're looking at the price and trading
the price as it goes up
and down with other confluences like
divergences like rejections like bullish
or bearish engulfing candles
trading off of resistance and support
zones
as well as a break and a retest to give
you confirmation to know that that price
is going to go up or down
all of this is essentially the basis of
all of my strategy videos on this
channel i don't make
a single video of a strategy that does
not work and that does not work for me
so i highly encourage you to check out
the entire playlist of
all the forex and trading strategies
that we have on this channel
choose the one that fits your
personality type the best if you're a
one-minute scalper
i got a ton of information for you if
you're a long-term position holder and
you want to go with the entire trend
i've got videos for you so definitely
check out all the playlists
all for free because i think the
education on day trading and getting
people rich and wealthy and independent
and quitting their jobs
is my duty to give to you guys for free
and like i said if you really really
want to do
one minute scalping and that's your cup
of tea check out this one minute
scalping video that i did that is
absolutely amazing and if you guys like
the way that i teach and you want to see
more videos like this consider
subscribing to the channel by clicking
this button
right here thanks so much for watching
and we will see you in the next video
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